Although 5G technology is still in its early stages, it could make positive changes in the retail sector. Retailers want to continue their digital transformation efforts and bring customers back to stores in 2021. Retailers will make use of their 5G investments to improve the customer experience in-store as well as online.
Insider Intelligence
Our December 2020 report, “Future of Retail 2021”, noted that digital-first retail experiences will increase in popularity this year with zero touch checkout. Consumer interest in mobile apps and mobile payments is already much higher than in previous polls. Periscope By McKinsey’s June 2020 survey found that 30% and 28% of US consumers were interested in these technologies, respectively. Future frictionless retail will be a common trend as more digital-first retailers like Amazon Go and Periscope By McKinsey expand.
Amazon Go, the cashierless convenience store concept with its Just Walk Out technology continues to grow its presence. Amazon has plans to expand its Amazon Fresh grocery stores. These “Dash Carts” shopping carts automatically scan and bill the items they contain. These stores are located in big cities such as Los Angeles and Chicago.
Amazon One’s handprint scanner technology, which can be used to identify customers at store entry, was also revealed by the company in September. These technologies will be licensed to physical retailers by Amazon, which would allow it to expand its reach and accelerate consumer adoption.
Integration of Amazon’s accounts and payment systems with in-store tech, such as computer vision systems and smart shelves, is part of the magic of its contactless stores—but not all cashierless stores will rely on computer vision technology. Shekel Brainweigh created an autonomous retail store format using AI-enabled smart shelving systems that weigh inventory and record the weight of items.
Guy Moshe (co-founder and chief technology officer of Shekel Brainweigh’s retail division of innovation) said the technology works in tandem to a Light Detection & Ranging system (Lidar), from Hitachi. It uses light to determine object distance to track shoppers. Groupe Casino is currently testing this store format in France. Although the stores can be located anywhere there is a mobile network, Moshe anticipates that they will require less compute power and cost less than computer vision-enabled shops.
Mobile Payments
Shop-and-go services that use Lidar and computer vision to identify customers and manage inventory should be more common. The US will see a rise in mobile payments volume from $705.28 million in 2019 to $2.541 trillion by 2025, across mcommerce and proximity mobile payments. Mobile devices are now central to the ability to make payments to retailers.
With mobile wallet use increasing, bandwidth and latency advantages offered by 5G networks may help speed up payment processes, whether they are via contactless payment or proximity. The use of SIM authentication through the cell service provider (meaning no Wi Fi logon) and fast networks for processing biometric data for identification also offers new opportunities to speed the payment process, while reducing fraud and ensuring that the transaction is secure.
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This article was originally published by eMarketer.
